Richmond Fed June manufacturing index -10 vs. 2 expected

• Manufacturing index -10 vs. 2 expected and 0 prior.
• Services index -11 vs. 3 prior.
• Manufacturing shipments index -9 vs. 13 prior.

Fifth District manufacturing activity slowed in June, according to the
most recent survey from the Federal Reserve Bank of Richmond. The
composite manufacturing index decreased from 0 in May to −10 in June. Of
its three component indexes, shipments fell notably from 13 to −9, new
orders decreased from −6 to −17, and employment rose from −6 to −2. Firms
grew notably less optimistic about local business conditions, as the
index fell from 3 to −15. The index for future local business
conditions, however, increased from 6 in May to 10 in June. The future
indexes for shipments and new orders remained solidly in positive
territory, suggesting that firms continued to expect improvements in
these areas over the next six months.Although the vendor lead
time index increased, on balance, firms continued to report declining
backlogs and vendor lead times in June, as those indexes both remained
negative.The average growth rate of prices paid and prices
received increased in June. Firms expected price growth to moderate
slightly over the next 12 months.

This article was written by Giuseppe Dellamotta at www.forexlive.com.